Broker News

Bank increases interest rates

Suncorp Bank has increased interest rates by 0.15% on new and existing owner-occupier home loans.

According to the lender, the rate increase applies to Back to Basics products (the new rate is 4.97%) and standard variable products (new rate is 5.55%).

In addition, Suncorp’s small business rates will lift by 0.15%, with the lender’s Business Essentials rate starting at 5.14%.

Suncorp’s CEO of banking and wealth, David Carter, attributes the increase to rising funding costs. He points to increasing competition for quality funding sources, the cost of meeting regulatory change and events overseas.

“The majority of bank funding is based on these factors, not the Reserve Bank of Australia cash rate,” Carter notes.

“While we have been absorbing these increasing costs, it’s evident that the trend is not likely to change. These factors are also impacting the broader industry, with many of our competitors implementing similar rate changes.”

Carter adds that Suncorp’s priority is to continue to offer competitive products and services to customers and balance the needs of both borrowers and savings.

“This includes delivering greater value by offering benefits to customers who choose to bundle their banking and insurance products,” he concludes.